6. INVESTMENTS IN JOINT VENTURES

The financial statements of the Company’s foreign joint ventures are initially prepared using the accounting principles accepted in the respective joint ventures’ countries of domicile. Amounts related to foreign joint ventures reported in the below tables and the accompanying consolidated financial statements have subsequently been adjusted to conform with accounting principles generally accepted in the United States of America in all material respects. All material profits recorded on sales from the Company to its joint ventures and from joint ventures to other joint ventures have been eliminated for financial reporting purposes.

Financial information from the audited and unaudited financial statements of the Company’s joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR) and all of the Company’s other joint ventures, are summarized as follows:

	November 30, 2015
	TOTAL		EXCOR		All Other
Current assets	$	50,371,596	$	25,060,815	$	25,310,781
Total assets		53,883,178		26,925,906		26,957,272
Current liabilities		12,948,319		3,612,595		9,335,724
Noncurrent liabilities		89,930		-		89,930
Joint ventures’ equity		40,844,930		23,313,311		17,531,619
Northern Technologies International Corporation’s share of joint ventures’ equity		20,369,002		11,656,658		8,712,344
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$	18,308,141	$	11,625,753	$	6,682,388

	Three Months Ended November 30, 2015
	Total		EXCOR		All Other
Net sales	$	21,871,209	$	8,207,696	$	13,663,513
Gross profit		9,648,081		4,153,477		5,494,604
Net income		1,961,922		1,536,247		425,675
Northern Technologies International Corporation’s share of equity in income of joint ventures	$	983,753	$	768,123	$	215,630

	August 31, 2015
	TOTAL		EXCOR		All Other
Current assets	$	49,295,116	$	22,620,323	$	26,674,793
Total assets		52,853,938		24,606,880		28,247,058
Current liabilities		12,288,383		3,360,142		8,928,241
Noncurrent liabilities		1,215,139		-		1,215,139
Joint ventures’ equity		39,350,417		21,246,738		18,103,679
Northern Technologies International Corporation’s share of joint ventures’ equity		20,544,238		11,571,361		8,972,877
Northern Technologies International Corporation's share of joint ventures’ undistributed earnings	$	18,483,377	$	11,540,456	$	6,942,921

	Three Months Ended November 30, 2014
	Total		EXCOR		Tianjin Zerust		All Other
Net sales	$	29,120,852	$	9,524,270	$	3,735,457	$	15,861,125
Gross profit		14,035,784		4,974,751		1,783,673		7,277,360
Net income		3,184,570		1,956,191		265,648		962,731
Northern Technologies International Corporation’s share of equity in income of joint ventures	$	1,606,683	$	978,096	$	132,824	$	495,763

On January 2, 2015, the Company announced that, effective as of December 31, 2014, the Company terminated its joint venture arrangement in China, Tianjin Zerust, and began the process of liquidating the joint venture entity. Since December 31, 2014, the Company has conducted business in China through a wholly-owned subsidiary, NTIC (Shanghai) Co. Ltd. (NTIC China). As of December 31, 2014, the Company started recognizing Tianjin Zerust based on its carrying value instead of the equity method since the Company no longer expects to significantly affect the joint venture’s operations or decision making. See note 7.

The Company records expenses that are directly attributable to the joint ventures on its consolidated statements of operations in the line item “Expenses incurred in support of joint ventures.” The expenses include items such as employee compensation and benefit expenses, travel expense and consulting expense. See Note 14 regarding the lawsuits filed in relation to Tianjin Zerust.

The Company did not make any joint venture investments during the three months ended November 30, 2015 and 2014.